COSTARS (Pennsylvania Cooperative Purchasing)

COSTARS is the Pennsylvania Department of General Services (DGS) cooperative purchasing program that allows Pennsylvania local public procurement units, including counties, municipalities, school districts, and eligible nonprofits, to purchase commodities and services from Pennsylvania's competitively bid statewide contracts at pre-negotiated prices.

What is COSTARS?

COSTARS was created by the Pennsylvania General Assembly to extend the benefits of the state's competitively bid contracts to a much wider range of public entities beyond state agencies. COSTARS members, which include thousands of Pennsylvania counties, municipalities, school districts, libraries, nonprofit fire companies, and ambulance services, can purchase directly from COSTARS-participating vendors at prices established through the state's competitive procurement process. Vendors who win Pennsylvania statewide contracts can elect to participate in COSTARS, which opens their contracts to the full COSTARS member community. COSTARS covers a broad range of goods and services including office supplies, vehicles, IT equipment and software, professional services, and construction-related products. The program is notable for its breadth of eligible member entities, including certain nonprofits serving the public, which is less common in other state cooperative purchasing programs. For vendors, COSTARS participation significantly multiplies the customer reach of a single statewide contract win.

Why COSTARS matters for government contractors

Winning a Pennsylvania statewide contract with COSTARS participation can provide access to thousands of Pennsylvania public entities without additional competitive effort. For vendors selling commodities or standard services, COSTARS is one of the most efficient sales multipliers available in the Pennsylvania market. Many COSTARS members, particularly smaller municipalities and school districts, rely on cooperative purchasing rather than running their own competitions.

Example

An office furniture manufacturer wins a Pennsylvania statewide contract and opts into the COSTARS program. Over the subsequent contract period, 400+ COSTARS member entities, including school districts, townships, and county offices, place direct purchase orders using the COSTARS pricing. The vendor generates substantial revenue from local government clients it would never have reached through direct sales alone.

Frequently Asked Questions

Who can be a COSTARS member?

COSTARS membership is open to Pennsylvania local public procurement units including counties, cities, boroughs, townships, school districts, vocational-technical schools, community colleges, libraries, and certain qualified nonprofits such as volunteer fire companies and nonprofit ambulance services.

How does a vendor participate in COSTARS?

Vendors must first win a Pennsylvania statewide contract through DGS's competitive procurement process. They then elect COSTARS participation, which is typically specified in the solicitation and contract. There is generally no additional fee for COSTARS participation.

Is there a COSTARS-specific contract, or does it use state contracts?

COSTARS uses the same statewide contracts that state agencies use. COSTARS membership provides local entities with the right to order from those contracts at the same (or better) pricing that state agencies receive.

Can out-of-state vendors participate in COSTARS?

Yes. Pennsylvania does not restrict COSTARS participation to in-state vendors. Any vendor that wins a Pennsylvania statewide contract and elects COSTARS participation can sell to COSTARS members regardless of where the vendor is headquartered.